Car dealers, buyers weigh in on Big Three's grim outlook

November 20, 2008|By CHRIS CASQUEJO WSBT-TV Reporter

MISHAWAKA Â? The Big Three automakers won't get help from Congress until next month at the earliest. Lawmakers delayed a vote on a bailout package. GM, Ford and Chrysler want $25 billion. That news increases the chances that one or more of them could file for bankruptcy.

Sales are down about 30 percent from last year at MishawakaÂ?s Gates Chevy World.

Don Johnson has bought four cars from Gates and he plans to buy a new one in six months. Despite the grim outlook, he wonÂ?t shy away from Chevrolet.

"I bought my first new car here, a '68 Chevelle Supersport. $3,000 brand new back in '68. And if they do bail out GM, I think they should take the CEOs and cut their bonuses, these million dollar bonuses, if things aren't going too good. But I'll still buy a GM car,Â? Johnson said.

Matt Helmkamp is president of the dealership. He believes that GM will not only survive, but eventually thrive. He believes the company is building better vehicles than years past.

Â?They have 30 models that get better than 30 miles to the gallon, as far as fuel economy. Everybody's been talking about that,Â? he said.

GM says it could run out of cash to operate its business as soon as the end of the year. But even if the company has to declare bankruptcy, Gates Chevy World says it will be business as usual where customers are concerned. Dealers say many costumers are asking about warranties and they say will continue to honor those agreements.

"One of the things a company can do to stay in business is stand behind their cars. They have had such low warranty costs that they recently raised their warranty to 100,000 miles on their power train in response to that they're just not paying a lot of warranty costs,Â? Helmkamp said.

With the immediate future looking bleak for American car companies, some buyers are making a patriotic appeal.

"I think people should wake up and buy an American car, keep the American people working,Â? said Don Johnson.

Congressional leaders want the Big Three car companies to develop a plan showing they can be economically viable before they approve any bailout money.